>> fox news election alert. barack obama has been reelected the president of the united states. >> what does that mean for freedom? >> i have no idea. >> that is our show.

>> it is finally over now we have four more years of barack obama up. what does that mean to me? freedom. in chicago the president's lugging supporters asked what does that mean for freedom? >> freedom? >> freedom? >> i have no idea. [laughter] >> freedom? freedom? [laughter] >> let's dance. most people had no clue what to do with the question. that is upsetting to me. the man who has taught me a

lot about freedom david those. were you surprised? >> i am dumbfounded. i would not expect they would give the answers i would like but i thought they would have an answer. >> it is this what good government give me? free down is not part of that. >> there used to be dead counter culture left like the marijuana freedom doing your own thing en if they'd understand starting a business is also doing your own thing. it is disappointing they don't even big of a connection between the democratic election and the impact on freedom. >> thank you for going to

chicagoennedy you go so i don't have to. people were happy he won again. >> they were thrilled. with the freedom question people used is objectively. i didn't think it would stop people but 57% were dumbfounded. >> last night u.s. supporters what will the election mean for america? >> immigration. >> he would help students like me to go to school to receive a quality education. >> now because of the programs we can move forward. we have to save the country first. [laughter] >> you are laughing?

>> they feel he saves the country but i think we wil go broke sooner that you can respond. >> we will because we have $5 trillion of debt to under his administration. we had 10 trillion over the last few but it is a higher rate than before. if you believe all those bailouts and stimulus money stop the depression then i think you think p save the country by the keep the burdens on business enterprise and npr today said business has been holding back because of uncertainty. now with the election there is certainty maybe they will start investing. that is whistling past the graveyard. [laughter] with more aggressive regulators and higher taxes?

john: and more dt with the 5 trillion, we have a chart comparing greece witthe riots and the united states is 12 years behind. >> but we are on the fast track. last night people were jubilant and excited but irresponsible to the point* of being dangerous. caretaking on the debt to be grasped their own future. the celebration was very e shortsighted people think free stuff is great but it is not free. john: i get to go to school three. >> obama has deported more than bush and climate change >> climate changes never

addressed. the president never talked about climate change on that stage. clearly it is not an issue so why do people tnk that matters? >> immigration is an opportunity for progress because hopefully the republicans have got a message was social issues is not working for them. maybe they're ready to talk. john: as big government and as i call government supported government capitalism might call crapitalism. [laughter] they were happy he would give them stuff. [laughter] >> with 3.6 trillion dollar federal government the money

go somewhere and will benefit some businesses which is the whole point* of crony capitalism taking money from all of us giving to some people. a few benefit like clean energy then you mighget the money and some of the with the defense contractor in favor of mitt romney that is good for your business but bad for the economy in general to tax some people. romney had a good line you don't just pickwinners and losers but you pick the losers. john: they could the random selection people look at politician as the person to solve every problem? president obama was the magic president. these people were waiting three hours.

he is magic. >> they've really feel he has the intrinsic quality now they he has been reelected to change people's lives like he has only been warming up. for what? it is terrifying. john: people felt this way about romney. >> but obama is a classic example of the colt of the presidency the idea that any politician can fix all the problems is not start with the obama but is the attitude we should get rid of racism. he should stop the rise of the oceans and get everybody house. i saw a teenager said he should give everybody a house. kids say that is understandable. but adults are supposed to

understand there are incentives, a trade offs and a cost. there are unintended consequences government cannot magically eradicate homelessness and poverty. john: but i am told now obama has a mandate republicans should honor it. >> he got 9 million fewer votes last night that seems to undermine the notion of a mandate. he had four years and 9,000,004 da to were people showed up. >> people said this is a mandate. not just health care when freedom came up with men said it means freedom over my body and freedom to choose. >> that means the government should force might employer

to pay for my medical and birth control choices. nobody is threatening anybody is right to choose. >> last night they said telegrams would go away, no one is insured, no one can afford college and abortion is absolutely a legal immediately. john: most people answered not freedom to choose but obamacare? i will get health care now. >> somehow it is free but did understand you have fewer choices under the single payer system. universal health care is the ultimate goal. >> it is not free. you pay for it in different way. >> i ask somebody if the hotel last have thre wi-fi.

of course, not i am asking is the cost included in the list price. john: i do not want you and my hotel. [laughter] >> one obama's porter waso happy. >> we the people to have the seat at the table when the big decisions are made for those who suffer the most. [laughter] john: the politicians decide aides who suffers the most? >> we don't know what is going on at the table of suffering. but the next four years there will be a great transparency but the people have a seat. [laughter] >> the whole concept of the people to have a seat represented by one of the politicians but there was an african-american man making the point* and republicans

have told african-americans women and gays and emigrants you don't have a seat at the table or the rights or the dignity the rest of us do now they paid the price. republicans wonder up bet gender gap and look at 70 years of history resisting equal rights that is a lesson 1/2 to learn but also you cannot solve than four years. >> of the chickens coming home to roost? [laughter] with the election means to marijuana and marriage. marijuana and marriage. , scott ally bank. marijuana and marriage. , scott why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years?

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john: the election is over did your candidate win? mine did not. libertarian candidate governor gary johnson received 1% of the vote to provide thought he would win this time. [laughter] he will join us later. now move to the ballot initiatives some states

legalizing marijuana recreational use. gay marriage, california raising their own taxes. i cannot follow the measures so let's turn to "reason" magazine or the brains behind them, editor-in-chief maxwell each and matt3 legalizing marijuana recreational use. gay marriage, california raising their own taxes. i cannot follow the measures so let's turn to "reason" magazine or the brains behind them, editor-in-chief maxwell each and matt glesby. did for you know, when it? >> a little bit. look at opportunities americans had yesterday to vote in a libertarian and direction of. and with colorado and washington is a huge geo on a drug prohibition that is how it will end in this country like alcohol prohibition. john: alcohol prohibition

was repealed by individual states before the federal government? >> one dozen states by the end of the period. john: new york was three years. 104 -- 10 years and forstmann was up to the fed. >> states lived in open defiance than the federal government cannot enforce it the fast majority is that the state level there are not enough agents to go to every colorado pot smoker. >> gapped the same time goodie a was warning people listen, a federal laws are still enforced. but the shift to marriage equality maine, maryland. john: stay on marijuana. >> i am happy to stay on marijuana. [laughter]

john: that does not mean they're not in trouble and the obama administration had more dispensaries. >> actually the clinton administrations started to raid merit -- medical marijuana dispensaries that became the goal. john: even after saying we would not. >> exactly. it is of major issue not about drug legalization but can the states set policies that affect their residence or give over to the government? the supreme court ruled that federal laws matter but it is a buy 10 of the apple to have ramifications far beyond mere one of legalization is. >> of the% of americans are in favor of legalizing it is

moving very, very fast. john: it past some of the 55/45. colorado and washington past solidly. washington said the levels driving under the influence. >> that was controversial. it was meant to come up with a way to let people spheres no. >> abell take your blood. >> washington state has about one year to figure out the technical implementation and colorado has six months. john: the colorado governor oppo this and said the voters have spoken. i thought they were for

individual freedom. federal law still says it is still ill the golden not break out but she chose. >> they like their part jokes. >> it is a great reminder you will not get help from politicians on this issue. the way to get things done is gore round with the initiative process or the technicality to get things done. democrats are just as useless as republicans. john: to the proposition of tax increases. >> native californian jerry brown pushed proposition 30 increasing taxes to help cover the budget deficit. john: only if you make a quarter of a million dollars >> year is the big picture between world war ii and

2008 how many years did california have unemployment above 10%? zero. says 20008 it is above 10% kind of permanently based on the blues state model of public-sector unions set their own prices to said the price is that taxpayers have to keep it is a disastrous economy. >> california used to be the bellwether state. beneficial trend, stuff like freshly prepared in season and vegetables the restaurants. now it is a bellwether or a death ell for the united states for custom the refusing to bring in spending it no longer attracts people. we should watch them ot for what is good coming next but

what to avoid. they're killing themselves. >> and the legislature there is a supermajority as of last night. they don't need a republican in to do anything. no veto power so we have a beautiful experiment a control group called california you want to see how this thinking works watch this day. unfortunately it will be a car wreck. john: what happened to the tea party movement? you wrote the book declaration of independence replacing republicans and democrats. i did not see that. >> look at the exit polls they were still a major player one-third of the voters were democrat, 1/3 republican and the rest were independent. but below the percentage of

the geral population because there are not being offered anything. >> gary johnson. >> many of them did the we've not seen the candidates that will get that overwhelming and unfortunately those major party candidates were and short supply. john: a marriage. three stat said yes. >> the fourth state minnesota's said no to the anti-gay marriage amendment. john: many states legalize but it is done by the court and 34 states and 32 states they voted yes. >> it will be interesting. karl rove made that election

about opposing a marriage. the republican party has reaped what is those there is a gap affiliation with the democrat and republican which is 20 percentage points almost entirely on social issues. john: two states voted against political speech. >> coloradand montana? >> they said looking at citizens united this is too much dark money. >> so from eight perspective you can say there is too much money but to keep people from speaking about it, with about initiatives is they will not work because the technological cut around is even stronger

and it is difficult to keep people from speaking their mind and larger volume. john: montana's said corporations are not entitled to constitutional rights because they're not he been beings. but they are groups of people that should have a right to participate in politics. >> this year club is a corporation. the reason foundation is a corporation. dam and. [laughter] >> i am excited some people were elected. good news. next. next. [applause] [ male announcer ] at scottrade,

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>> we can build on the progress we've made. john: really? they made progress. unemployment's higher now, and probably, because thigh increased the burden of government. federal spendings' up by billions, and obama's bureaucrats added thousands of

pages of new regulations, and now we're up to this 170,000 pages of rules. each one is an assault on opportunity and personal freedom. maybe i'm too negative. let's get an expert look at what the electionmeant for freedom from the all-star panel. david boaz, hadlel heath, and deroy murdock. >> i was shocked he got back in with the record he had. there is some good news -- john: you said it's vital it's not a slight republican win, but a crushing defeat f obama. discredit socialism in the u.s. for a generation. >> well, that didn't work, did it? >> didn't work. >> good news, john flake won a

senate seat in arizona. that's good news -- [applause] here's a terrific free market champion, the biggest opponent of park barrel spending, well-spoken, and intelligent. ted cruz in texas also -- [applause] a very bright man, terrific speaker, happens to be hispanic, something that's positive, and republicans have to figure out a way of speaking with the hispanic voters and having senators like rubio and cruz helps in that regard. john: he is anti-gay marriage,ments to build the military,ments to build a wall, and triple the size of the border patrol. >> he believes in limiting taxes, limiting spenng, balancing the budget, and not boxes of regulation. is he a perfect ideal reasonable senator, not -- john: why not? hadley, bad news and good news.

>> athe state level, good news first. several states passed ballot initiatives to say "up yours" to obamacare. alabama, wyoming, montana, they all said citizens of our state are not compelled to participate in a health care cents, and missouri, citizens there said we're not having a health care exchange there for the affordable care agent. john: the feds can compel it, but it's harder. >> right. it indicatings the citizens of missouri are thinking about this issue correctly that it's a bureaucracy at the state level regardless if it's the states or feds, it's a bureaucracy, not a marketplace. the bad news in terms of ballot initiatives, there was a handful of bad news across the country. oregon ballot initiative, that would phase out the estate tax or the death tax, the estate tax ll come up again this year because it's part of the bush tax cuts from the federal level but that failed 53% to 46%.

john: david boaz, other goods news? >> other than the marriage and marijuana initiatives and the health care initiatives, i think that can be taken as a sign that there are a lot of libertarian leaning voters, libertarian instincts in the public so maybe it's not that just they left obama, but republicans drove away independents and suburbans with a lot of the social policies. in the house of representatives -- >> there's interesting people not hous of representatives, people from the ron paul movement, rand paul's state of kentucky -- john: won 62%. >> a big area, and won the first re-election in michigan, which was good. john: won big. >> that's right. he was thought to be threatened another guy in michigan, came out of nowhere, out of some strange circumstances, and he's

a fan of ron paul. that's good. a couple -- john: real libertarians? >> well -- joan: amash is known as mr. no, a record voting against republicans and democrats. massey opposed the patriot act, warrantless wiretapping, the drug war. >> i look forward to working with them and other examples. young americans for liberty endorsed one in florida is is new, and he won, and a lot of the rand paul people in kentucky like andy bar w won in lexington, kentucky for congress. there's a few people there which is good. john: thank you, david, hadlye, deroy, coming up, the presidential candidate i voted for joins us. [applause] i'm a conservative investor.

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john: now, the next president of the united states, governor gary johnson. [cheers and applause] [laughter] what? he didn't win? [applause] governor johnson, you didn't win? how many votes did you get? [applause] >> you know, john, i got over a votes, but i didn't win number one, and i thought and the fact this was is two-person race, every vote would count, make the pitch that the vote counts for the person you most believe in, but it didn't pan out. we got over a million votes, and put a voice to issues that really needed a voice, and, you know, if i were to point at one factor, it was romney losing the race, and it was losing the race

because he was not conservative enough on dollars and cents, and i think the republicans' social agenda turns off most americans. john: well, you did get 1% of the vote, which is pretty good, and a higher vote total than any libertarian has before, but it does seem to be a two-party country. people think republican or democrat. it's going to take some work to open brains. >> well, i think so, and then you talked in your earlier segment about initiatives that did pass. marriage equality, legalizing, regulating marijuana like alcohol in colorado. i thinkthat -- i think that is going to change worldwide drug policy. wow. like i say, coloradoans get it, and they did it. i applaud colorado. john: you join us from new mexico, back in your home state, going to lick your wounds and go back to private life?

[laughter] >> well, by "lick wounds ," i have a big part of my life, and i hope to regain some ultra fitness in the next month, and not that i'm not a fit guy right now, but i'm looking forward to that, and looking forward to being, continuing to be a spokesperson. i think the last thing anybodiments to think about or -- anybody wants to think about or contemplate is the next election cycle. i join everybody in putting my finger up my throat. we're sick of this. it's done with. let's move forward. i think the country's in deep trouble, and it's from a financial stand point. i think that unless we slash spending, we're going to find ourselves in a monetary collapse sooner than later. john: you joined the race because you didn't trust either candidate on the front saying you never believed obama would try to balance the budget as he said he would. >> well, i'm more liberal than

obama with civil liberties, and i'm more conservative with romney on dollars and cents. the majority of americans fall in that category, and, look, republicans are horrible when it comes to civil liberty, and they are not so good on dollars and cents. democrats are horrible on dollars and cents and not so good on civil liberties. the majority of americans, as a member of the majority of the americans, we do care about these issues. offering up a prediction. we're going to find ourselves with a heightened police state in the country. we're going to find ourselves continuing to militarily intervene in other countries' affairs resulting in more enemies than fewer, and the spending is unsustainable and will continue to be so. john: on that bit of bad, but probably true news. gary, stick around.

the audience wants to question you, and after that, some pockets of good news this election. [applause] from investing for the first time... to investing with knowledge. the potential of td ameritrade unlocked. nyse euronext. unlocking the world's potential. to a world of super-connected intelligence. the potential of freescale unlocked. nyse euronext. unlocking the world's potential.

[applause] john: we're back with gary johnson. this show, special correspondent kennedy, spent election night with president obama and his fans, and a real expert on individual freedom, the cato institute, david bowes. >> i'm zach from florida, and i was curious of your future plans at the 2016 election, and if that's in the plans. >> well, i think that the last thing people want to hear right now is anybody with future maps going to 2016. i mean, that's like sticking the finger in the throughout ready to throw up just over how sick we are of presidential politics at this moment, but staying involved, trying to provide a voice here for issues that i think are really important, and those issues are civil liberties, and those issues are spending, nd those issues are the endless wars that we find ourselves in creating more enemies to the country than

fewer. john: on the scale between fun and horribly grueling, what was the campaign like? [laughter] >> it was exactly that. [laughter] it was fun to horribly grueling. looking forward here to fun here, so looking forward to fun. [laughter] >> governor johnson, i heard yourself and judge gray filed a case of the anti-trust laws of the republicans and democrats monopolizing the debates. is this correct? what came of it in? >> we filed, it's pending, there's emergency clauses on both lawsuits, and the judges ruled there was no emergencies and i didn't have to be in the debates immediately and they could wait until after the debates to hear the cases so the cases still are pending. john: home you win that. >> by the way, good thinhe had a judge on the side.

>> jury present is a judge, was a judge. who's next? >> we heard the add damage -- addage he who robs peter to pay paul. what happens to amera when we reached that tipping point of 50%? >> well, i think we know how that no presidential candidate wants to answer that question, but it is an issue -- it's more complicated than simply saying 48%. some of the 48% are people on social security and medicare, and at least in their own minds, they paid for that. they are getting back what they pay. john: they don't know they t back triple what they paid. >> but in their minds, they are getting something ba they paid. it is absolutely a problem if you get more and more people in a democracy thinking that a tax increase doesn't cost them any money, and they can benefit from it, and we clearly have not

found a solution to that problem. we have to do a better job with fiscal and economic education, but we've been working on that. there's a lot of experiments going on now with video and new media to convey messages like that, but it's comp kateed. >> yeah, i mean, the solution is rationality. >> well, okay, then, we're doomed. [laughter] >> there's a notion here a democracy. we're not a democracy. we're a constitutional republic. in a democracy, you can vote yourself a raise. that's where we got to in this ri country -- in this country. i had a debate with jill stein who said there are 37 million students out there that if they vote for me, they will get free tuition. >> that is no different than a junior high school promise. >> but the good news was jill stein 1 the green party candidate and had supporters, certainly around here, and, yet,

gary johnson got twice as many votes as she got. [cheers and plause] high five on that. [applause] all right. who is next here? yes. >> i'd like to ask david how do you assess the likelihood of the expanding number of incumbents in the tea party to influence republican policy, hopefully national policy in the direction of more liberty? >> i hope that will be the case. the point i've been making to the tea party the past three years is you have to stay engaged after the election because the spending interest and represent seekers never stop paying attention to congress, and citizens usually do. they get excited. they get people elected. they go back to their lives. john: yes, go ahead. >> so many who consider themselves lib tear -- libertarians are wondering where to go next, where can we make a difference now?

john: gary, to you, and i asked twitter followers what is president obama's re-election mean for liberty? someone who calls himself at the justice department, i don't know if he has, but he says we hope against reality, but the record shows we are screwed. >> well, what i hope it means for liberty-minded individuals is is really this focus on being fially conservative and then moving away from the social agenda so if you're going to identify yourself as a libertarian, a part of the republican movement, this did romney in, i think, is the fact there's a social agenda that scares most americans, and that is anti-gay, anti-women's rights, anti-immigration. look, that's not the future. i think that we are absolutely, socially accepting of others' behavior as long as others' behavior doesn't do harm to us, and, yet, this remains centrist within republicans.

i'm disheartened by the fact there's so many people who identify themselves as libertarians, but they don't vote that way. john: i didn't think romney was anti-woman, but we're out of time. thank you, all. coming up, i'll explain how to fix government, but one clue, we should fix it the way we fix a cat. [applause] people really love snapshot from progressive, but don't just listen to me. listen to these happy progressive customers. i plugged in snapshot, and 30 days later, i wasaving big on car insurance. with snapshot, i knew what i could save before i switched to progressive. the better i drive, the more i save. i wish our company had something this cool. you're not filming this, are you?

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♪ john: did freedom win this election? no. e central planners won again. government wll grow. that pile of regulations will continue to grow. freedom will yield. we need to fix government. you've heard that bore, but i mean, we've to fix government and politicians the way we fix a cat, spay a dog. i took this idea from cato "parliament of whores" but they act like they divvy up the spoil. we have to tame the politicians, put boundaries on them, teach them not to beg at the table. well, i guess begging would be okay, but we have to stop them from stealing food off the table. we should teach them to heel when it comes to foreign policy, teach them to stop making messes

in oash -- other people's yards. when it comes to domestic policy, teach them to stay out of the bedroom, out of our beds. term limits would be good, too. when we give power to politicians, they should know they don't get to keep it forever. if a few years, they bring the poir back to us and drop it at our feet. good boy. now, back to the kennel. that's not going to be easy, but at least we made a little progress this election. some states elected people who support liberty like senator flake and congressman amsah and others. georgia voters said yes to expanding charter schools. two states voted to allow all adults, not just sick people to use marijuana. several said yes to gay marriage, and michigan defeated a pan that would have made unions more powerful. there was some progress, not much, but some. there's some good news. that's our sho